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Jackson Hewitt gets 80 percent RAL funding, shares soar
Fri Dec 10, 2010 11:58am EST
http://www.reuters.com/article/idUKTRE6B83P020101210?type=companyNews
(Reuters) - Jackson Hewitt Tax Service Inc (JTX.N) said it could fund 80 percent of its refund anticipation loan (RAL) program and would secure a longer-term covenant waiver with its lenders, sending the company's shares up 35 percent.
Jackson Hewitt said it amended an agreement with its RAL funder Republic Bank & Trust Co, a unit of Republic Bancorp Inc (RBCAA.O), allowing it to allocate RAL funds to offices based on volume, thereby covering 80 percent of anticipated funding requirements for the 2011 tax season.
For most of 2010, the company has struggled to fully fund its RAL program, putting it at risk of defaulting on credit agreements, which depend on it having 100 percent funding.
The No. 2 U.S. tax preparer last received a covenant waiver on November 19 extending the date by which it must submit its RAL funding documents to December 17.
On a conference call, the company said it would not get 100 percent RAL coverage for 2011, and expects to obtain a longer-term waiver to amend RAL funding conditions by December 17.
The company, which competes with larger rival H&R Block Inc (HRB.N), said on Thursday it secured full coverage for its assisted refund product that targets people who might otherwise not be able to afford its services.
The coverage and funding of its loan and assisted refund products gives Jackson Hewitt a competitive advantage over H&R Block, whose RAL funding is in doubt as it sues its funding provider HSBC USA, a unit of HSBC (HSBA.L).
"I would expect if Block does not have RALs we will benefit," a company executive said on the conference call.
For the 2010 tax season, H&R Block had expected to benefit from Jackson Hewitt's inability to secure full funding.
RALs, which usually last 7-14 days until taxpayers receive their refunds from the U.S. Internal Revenue Service (IRS), are highly profitable for tax preparers.
However, these loans have come under fire from consumer groups over concerns that high U.S. unemployment is forcing people to borrow short-term at high rates. This has led banks like JPMorgan Chase & Co (JPM.N), which used to fund independent tax preparers' RALs, to stop funding these loans.
In August, RAL programs were hit when the IRS said it would stop issuing a "debt indicator" -- which indicates how much a tax preparer can lend to its customer safely.
Jackson Hewitt also posted a narrower-than-expected second-quarter loss on Friday.
The Parsippany, New Jersey-based Jackson Hewitt's shares, which rose nearly 34 percent on Thursday after it secured full assisted refund coverage, climbed another 35 percent to $1.48 on Friday morning. They were trading at $1.46 midday on the New York Stock Exchange.
H&R Block's shares were down about 1 percent at $12.98.
(Reporting by Jochelle Mendonca in Bangalore; Editing by Roshni Menon)
Good times...CEO is doing the right things for the company IMO. Cutting costs and gaining market share back. The PPS will reflect this strategy over time as the company recovers.
DD22
yes, hi accuracy on chart reads...that is why I am looking at this stock... one that look very good going forward, now get further DD search and look for info...
R and S points...given
If we were able to forecast the future we sure wouldn't be on here..lol. Are you able to consistently and accurately do that on your stocks with a degree of certainty?
We are in uncharted type territory with this because the stock hasn't been down here this low before through the next reporting periods.
I can say pretty confidently that the next 2 reporting quarters will be their best of the year as the tax season runs from Jan-April. Meaning IMO I believe we will see a rising confidence and growing pps from now until the next quarterly 10-Q comes out in March 2011.
They will be in there heaviest news and PR cycle as well as advertising exposure over the next 2 months and the 52 week high is $5.84 just to serve as a guide.
There are plenty of analysts that cover JTX and have varying opinions of the stock's future EPS projections and pps. Take your pick.
My theme is North.
DD22
i see you are a regular here...what is the pps looking forward...into next Q??? anyone on this board able to figure that out???
It popped Thursday and Friday just in anticipation for and release of information from the earnings call on Friday morning.
DD22
Recent Jackson Hewitt Tax Services, JTX News
Quarterly Report (10-Q)
Edgar (US Regulatory) • Fri Dec 10,2010 5:14 PM
Jackson Hewitt Announces Details for Earnings Call
PR Newswire • Fri Dec 10,2010 8:23 AM
Jackson Hewitt's New Online Discount Shopping Network Offers Deals With Leading Retailers and Chance to Win $10,000
PR Newswire • Fri Dec 10,2010 8:00 AM
Jackson Hewitt 2Q Loss Narrows Slightly On Lower Costs
Dow Jones News • Fri Dec 10,2010 7:50 AM
Current report filing (8-K)
Edgar (US Regulatory) • Fri Dec 10,2010 7:30 AM
Jackson Hewitt Reports Fiscal 2011 Second Quarter Results
PR Newswire • Fri Dec 10,2010 7:00 AM
Current report filing (8-K)
Edgar (US Regulatory) • Thu Dec 9,2010 8:09 AM
Jackson Hewitt® Entities to Hire More Than 32,000 Tax Preparers Across U.S. for Upcoming Tax Season
PR Newswire • Mon Dec 6,2010 10:15 AM
US EQUITIES WEEK AHEAD: Iran Talks Planned; Verizon Wireless To Launch 4G Service
Dow Jones News • Fri Dec 3,2010 2:39 PM
Jackson Hewitt® Reminds Taxpayers That Big Life Changes Equal Big Tax Savings
PR Newswire • Tue Nov 30,2010 11:35 AM
so, anyone able to project a pps going forward here? thanks... I read charts not fins...
where is fin news that caused this to pop dec 10th friday it was due???
I sold yesterday at 1.11, bout this morning pre market at 1.25 sold again at 1.35 I'm happy
If they are able to fill that gap this is a total buy again. That's what I would be looking for if $1.25 doesn't hold. Getting good support in the high $1.20s right now.
Well I'm out at $1.45. Good luck to everyone still holding.
What a nice move that was!
. GM all.. Z
JTX brings a smile to my face yet again.. Z
Looks like this is just a pause for some covering. I'm holding for $1.20+ We should either move up going into the close or gap up tomorrow on the earnings.
I'm pretty sure the conference call is going to be much more optimistic than HRB's was a few days ago.
Volume is nuts this morning
Jackson Hewitt says has full assisted refund coverage
http://www.reuters.com/article/idUSTRE6B83P020101209?feedType=RSS&feedName=globalMarketsNews&rpc=43
Thu Dec 9, 2010 10:34am EST
(Reuters) - Jackson Hewitt Tax Service Inc (JTX.N) said it believed it has secured 100 percent assisted refund coverage for the 2011 tax season, sending the no. 2 U.S. tax preparer's shares up 28 percent.
Jackson Hewitt signed a program agreement with Santa Barbara Tax Products Group (TPG) to be the assisted refund provider at some of its tax service locations, it said in a regulatory filing.
Santa Barbara Tax Products provided 50 percent of Jackson Hewitt's assisted refund coverage for the 2010 tax season.
Assisted refunds allow customers to have the tax preparation fees deducted from their refunds and have the remaining amount disbursed either by direct deposit, check or through a prepaid card issued by Jackson Hewitt.
Assisted refunds help tax preparers attract clients who might otherwise not be able to afford their services.
Jackson Hewitt, which competes with larger rival H&R Block Inc (HRB.N), has yet to secure full funding for refund anticipation loan (RAL) program, one of its most profitable products.
Shares of the Parsippany, New Jersey-based company, which have lost more than 80 percent of their value since the funding of its RAL program fell through last December, were up 20 percent at $0.99 in morning trade on Thursday.
They touched a high of $1.05 in early trade on the New York Stock Exchange.
Congrats for hanging in there. $1.03+ today.
Now I gotta decide if I want to hold through the earnings.
JTX looking good today up 24%... earnings tomorrow
Wow, I'm liking pre market this morning .88
Thought it would get a push at the end. Still think games are being played here.
Have you noticed how they open it higher just to short it down? Looks like that's what happened after noon today.
There is a nice gain waiting here, but time will tell if it will be for the longs or the shorts. Friday will force a change in the action.
I hope so my average is 1.03
And it turned...
Thank you HRB management for having your thumbs up your butts this year.
If this closes over 85 today, I think we will be up around 90 going into earnings.
Good guidance and this is $1.20 easy.
Chart looks like it wants to turn, but the shorts are still in control here.
Looks like Friday will determine our future direction.
HRB reports after the close today. Should be interesting.
You're welcome.
It really isn't weird at all IMO. The shorts are in control now until the company can provide a catalyst for the value buyers to step in and provide buying pressure to overcome the shorts.
Bad news can be priced in but in our case I don't believe it is fully yet.
I hadn't looked at the Book Value of this yet so I don't know what the pps could potentially go down to before entertaining the BK idea. They really don't have much by way of real assets with buildings, real estate etc.. as the franchisees bear all of those expenses. Their proprietary tax prep software and customer lists are their most valuable "assets" IMO.
The market doesn't act reasonably as we have seen proven over and over in the past 3 years so a $20 Million market cap unless backed by hard, real assets isn't any guide per se for me. It's purely in the numbers at this point and the strategy going forward to retain the business they have and new ideas to gain market share back from competitors or to possibly venture into new service markets to create new revenue streams.
Since we are in formerly uncharted pps territory we have to look at psychological and technical areas of support below here as areas from which to defend and properly price this. .75, .67, .60, 55. and .50 are the immediate levels that come to mind as support in any really negative reaction.
Anywho, just solely an opinion. The earnings call could be great and the stock could march back to over a $1 in one or 2 sessions easily.
DD22
Thanks for this post.
I think the trading has gotten even weirder the past two days.
Thought it was worth it to at least take a starter. How much lower can it really go? And do you think the loss they will report next Friday is already priced in?
Unless they go BK I think $20 million should be the floor on the market cap.
Jackson Hewitt to Report Fiscal 2011 Second Quarter Results on December 10, 2010
PARSIPPANY, N.J., Nov. 29, 2010 /PRNewswire-FirstCall/ -- Jackson Hewitt Tax Service Inc. ("Jackson Hewitt") (NYSE: JTX) announced today that it will report its fiscal 2011 second quarter results prior to the opening of trading on the New York Stock Exchange on Friday, December 10, 2010. Harry W. Buckley, president and chief executive officer, and Daniel P. O'Brien, executive vice president and chief financial officer, will host a conference call to discuss the results and preparations for the 2011 tax season on Friday, December 10, 2010, at 8:30 a.m. (EST).
The fiscal 2011 second quarter results press release will be available at the Investor Relations tab of Jackson Hewitt's website, www.jacksonhewitt.com. The conference call will be simulcast live on the Internet through the same website. If you are unable to listen to the live webcast, a replay will be available on this website.
About Jackson Hewitt Tax Service Inc.
Based in Parsippany, N.J., Jackson Hewitt Tax Service Inc. (NYSE: JTX) is an industry leading provider of full service individual federal and state income tax preparation, with franchised and company-owned office locations throughout the United States. Jackson Hewitt Tax Service® also offers an online tax preparation product at www.jacksonhewittonline.com. For more information, or to locate the Jackson Hewitt® office nearest to you, visit www.jacksonhewitt.com or call 1-800-234-1040. Jackson Hewitt can also be found on Facebook and Twitter.
Investor Relations Contact:
Media Relations Contact:
David G. Weselcouch
Michael J. LaCosta
Vice President, Treasury and Investor Relations
Director of Public Relations
973-630-0809
973-630-0680
For those interested in listening in on the call or for the webscast afterwards. It's always good to hear the CEO talk directly about the guidance for the company.
DD22
Man, I hope that little bit of support at .75 can hold and maybe give us a bounce going into tax season next month. The 2nd Quarter earnings call will be a week from today, December 10th at 0830 AM ET.
See link below for exact details for the call.
http://ir.jacksonhewitt.com/phoenix.zhtml?c=177359&p=irol-EventDetails&EventId=3561574
With the way this has traded I'm gonna see how the market reacts to the earnings results before coming off the sidelines. Plainly it's just too risky and it isn't a 50/50 odds play anymore on good versus bad reaction to the call. Way more odds that the market will be negative and we will go lower. BUT it will depend on what new things/guidance the CEO Harry Buckley may issue as well.
I do expect pricing to become quite a bit more competitive and value oriented within the industry itself in order to keep the dwindling market share. Good news for the consumers--verdict is out for now on how much that will shave into the margins for companies like JTX. The good news for JTX is that the local franchisees have a large degree of flexibility to conduct pricing strategies based on their local markets versus a pure nationally dictated pricing strategy.
This crucial "rebuilding and rebranding" year for Jackson-Hewitt it's all about relaying and building an initial strong customer experience for new customers and adding value and reinforcing relationships, strengthening customer experience for retaining existing customers. It sounds easy but implementing fundamental, core changes is a big challenge for a large company. The market is changing and will reward those in the industry that are nimble enough to adapt and change with it.
DD22
Shhhhh.....JTX is trading funny. A move seems imminent.
I think more likely up than down.
For $20 million, I will take my chances. There are sub-penny stocks with market caps in that range.
I hope management has a plan here.
Great!!. Welcome and good luck to you and to JTX this next year.
DD22
I jumped in at .83, glad I did. Hopefully it goes back over a dollar. Looks like this can have a nice bounce up. Decent volume, which is a plus.
That will have to be your own decision but I do know the company is trying to keep the pps above a $1 in order to keep meeting the Nasdaq listing requirements for the stock.
Tax season begins in January and there really won't be any revenue reporting until the MOR for January comes out in February.
Other than that look at the technical support areas on the chart. The RSI and MFI are starting to curl back up after this week's early sell off on Tuesday-Thursday. The pps seems to have stabilized at least today somewhat and the selling has subsided.
Personally I like it at these levels just based on a short term recovery back over $1 if nothing else.
That's my opinion---do not buy or sell based on what I may ramble on about though okay?
DD22
Dies anybody think this is a good time to jump in? tia
LOL! Stalker hehehe .. was just curious on if anyone read or posted her :)
and who can point fingers........I got the letter a few years ago that my info was compromised from the dept of veterans affairs when they didnt keep tight enough control over their own records.....
to point the finger at a whole company for the actions of one is kind of like holding all of humanity responsible for charles manson
Records keeping procedures of sensitive information is a valid area of concern for businesses like JTX. It looks like the company is already doing their own investigation into what Mr Burnett did and of course they take this sort of incident very seriously. Read the very bottom.
http://www.news4jax.com/topstories/25442389/detail.html
The STORY is about the MAN that made a bonehead decision. Did JTX tell him to dispose of the records in that way?? Nope.
Regardless this was a localized incident involving a FORMER franchisee who made a VERY POOR personal decision. Any scenario can be "what if"fed into some big massive liability. What if this massive scenario you described then spread to all of the companies in the United States who collect and store private information about their customers. Would JTX be held liable for starting all of this massive investigation? ummm..no.
On the legal aspect, if a former employee or customer wants to sue over this then I would tell them to get in line with all the other folks. JTX keeps plenty of lawyers on retainers as does most big companies who get sued for any and everything that our litigious society can dream up. And if in the off chance the person does win...that is why JTX and their franchisees have insurance of all sorts and types. Unfortunately, lawsuits happen and will happen all the time with service businesses like JTX.
The tax prep industry has plenty of regulation (internal and external) that guides the tax preparers on how to handle the collection and storage of their customer's personal information. Much stricter standards and operating procedures than 90% of the other businesses that collect and store the same type of info...i.e. the thousands of payday loan, small credit financing companies, credit card companies, car lots, insurance companies and on and on... Businesses like JTX and HRB have the IRS and Federal Trade Commission shining a flashlight up their tailpipes all the time... Who is doing that to Bubbas Credit Finance Company or Linda's Happy Town Insurance Company down the road? Or maybe the local medical clinic? Noone...except some reporter types after a story...
http://www2.wspa.com/news/2010/jun/29/management-responds-after-sensitive-information-fo-ar-470700/
http://www.csoonline.com/article/484847/a-real-dumpster-dive-bank-tosses-personal-data-checks-laptops
http://www.pinewswire.net/2010/06/medical-records-found-in-dmvs-dumpster/
Oh and now the IRS is making the tax prep industry meet minimal training standards and certifications for the employees.
http://www.theincometaxschool.com/1626/operating-tax-business/a-special-alert-from-natp-issued-today
http://www.theincometaxschool.com/1564/tax-prearer-regulations/new-online-registration-system-for-paid-tax-return-preparers-is-now-available
That's fine but again who is doing that to all of the industries described above?? Who is checking the IRS employees for competency and training when they hire the thousands of temporary workers for tax season every year...oh that's right? Noone.
This will be a critical year for JTX and each move it makes will be very very important for it's financial future.
I'm already in the stock. Only time can tell if that is a wise decision.
Thanks for your contribution to the board,
DD22
You don't even know if anyone's information was compromised but you're so antsy to jump into the stock? Let me guess because the company said they did an investigation and they think everything is ok then it is? Ok, yeah I believe that.....not. There could be so much more fallout from this. What if these employees happen to become victims of identity theft? What if after becoming a victim of identity theft the victims decide to sue JTX? What if the lawsuit results in a company wide investigation of how employees and clients personal information is secured? These are valid questions that should be raised.
doubledown,
I was thinking about the SS#'s the big three have on file, not SS admin.
a robocall with those numbers would at least give an indication as to if a refund will be offset.....
no way would SS admin. touch this but the database is huge with with the banks or the tax prep folks.
wow that's a rapid fire of stuff..
Well as you know the RAL isn't any money maker for the tax preparers anyway but it BRINGS folks in the door. Preparers $$ comes from the tax prep fees..
I'm sure there will be an increase in what the banks will charge as any service that is being made more complex to verify. But they may stabilize pricing to try to minimalize the loss of customers. Wishful thinking I know...
Although a good idea, I doubt there would be much cooperation between Social Security Admin and any instrument preparers or lenders would propose. You can't get them to cross pollinate now to share info to gather up money that is delinquent to other government departments much less a for profit private corporation. Especially the "evil" tax preparer predators.
It doesn't look favorable for HRB to get the RAL funding back this year from their filings but that is the irony of this. IMO HRB and JTX will prolly get the funding back sometime in the future BUT the lending rules will have become so restrictive that the Banks won't be allowed to approve the micro-loans as they previously did as they will be based on CREDIT versus just the Debt indicator. That is what is so shitty about this trend.. A guy or gal who has historically received this RAL for years with no problems WILL NOT be approved under the new lending rules.
I really don't understand what you are asking about with the e-file 100% as that has never really been the goal..
BWTFDIK,
DD22
the cheese is moving...JTX rats are learning and moving with it :-o
double down.......you can thank Mark Earnst for all of this.
fella got canned from Block then wrangled a second in charge at IRS and little retribution is pounding us at the moment.
Not to mention the banks are going to have to charge more to cover the bad loans that slip through.
I was wondering about about a few things i thought id bounce off of you as someone who knows the business.
I was wondering about the treasury dept offset number.....wonder if the big 3 can set up some kind of robo call with all the social security numbers on file (if they can get some legal ground to do so) and have some kind of default debt indicator.
also wondering about the partial RAL's that folks did the last time the debt indicator was not in place.
my understanding is that IRALS are still in place but i wonder if the approval rate will suffer because of the debt indicator. Wonder if the banks will pull some increased charge which wouldnt make sense as they never depended on the indicator to start with.
Do you know if modernized efile will be 100% in place this tax season or do you think we are still another season away?
drop me a line if you care to chat......mountains539@gmail.com
Awwww...well it looks like our friends at HRB got some REALLY BAD news on Monday.
http://www.bizjournals.com/kansascity/news/2010/10/18/hr-block-lawsuit-against-hsbc-may.html
Say goodbye to 100% of their RAL business since they HAVE ONLY 1 BANK that they get their RAL funding with...bummer.
JTX still has over 40% of it's frnachisees able to offer that as a product.
The bottom line is the RAL will prolly come back for all of the Major Tax preparers in time BUT THE APPROVAL RATE for the RAL will go from about 90% to about 15% courtesy of the removal of the debt indicator and other "helpful" items that the FDIC has placed on the RAL lending institutions.
At least this news wasn't dropped on them the day after Christmas like it got dealt to JTX last year. Still pissed off about that.
Thanks Uncle Sam for systematically chipping away and trying to destroy another industry. Remember, in whose best interest is it for the PEOPLE TO FILE THEIR OWN TAXES????? The majority of people that file their own leave off a lot of deductions and are not up to speed on all the tax "changes" that get jammed in when Congress meets again after the November election cycles. It happens every year. So regular Joe filing their own return on average get less money for their tax returns. See how that works now and why this industry is a target for FDIC and all the special lobby groups like ACORN who portray them as "evil" and "predatory"? IT MAKES THEM (US GOVT) MORE MONEY!!!!
Give me a break,
DD22
sorry HRB, I told you months ago that they would be coming for you next and to not be all warm and fuzzy because our RAL was being affected. It's all about PRICING and VALUE for the service provided to the customer now.
If you don't want to invest in JTX because of 1 FORMER franchisee making a bad decision then this probably isn't for you. It was a regrettable incident but not representative of the company or the thousands of other franchisees doing the right thing.
Oh yeah...JTX might not recover from that data loss of 1 of over 6000 franchise store locations...although technically the data wasn't lost thanks to an observant person.
Meanwhile let's see THOUSANDS of customers information was at risk with with a couple of H&R Block's bungles..
http://news.cnet.com/Breach-exposes-HR-Block-customers-tax-records/2100-1023_3-236972.html
http://datalossdb.org/primary_sources/0000/1697/HR-Block-DigitalTax-FS.pdf
I wonder how many government agencies and Private Banks and Credit Card companies could be guilty of much more massive losses of data..ELECTRONICALLY? The VA, Social Security Administration, CitiBank etc.. Google that and you'll never want to give your info to anyone again.
DD22
I like the big hammer candle JTX made on Friday.
There was a some bad publicity yesterday so I waited to see how the market would react and it looks like it the effects were nill.
Here's the news article referring to the bad press
JTX's Security Breach
Due to nature of the mis hap i'm having serious doubts about jumping in. What do you guys think?
Okay cool...I'll try to send you an email later today or this weekend.
DD22
p.s. if you are into actually investing in pennies check out some of my other stocks I'm into. BF*J and I*GI are the two I would recommend presently as BUYS...IMO
sorry double
i just updated this to get rid of some stuff......i understand you are the moderater of this board......i do have a LOT of information if youd like you can email me at mountains539@gmail and go over what might or might not be good for the board
Nice post.
"also, keep up with their RAL funding. The removal of the debt indicator may make a little trouble with increasing their funding for this year...."
This was why I was wondering why no mention of this issue as an INDUSTRY issue and not just a JTX problem. You've addressed that now with the RAL's going away comment below thanks.
This is the reassuring first post?
so thats what its all about......the PPS had to be in accordance with NYSE limits or it would be delisted. Time was running out to comply.....it got pumped up to meet the requirements or was it the post afterwards?
Okay now for the nice part, sorry for being skeptical and or critical on approach...I've seen it all on I-Hub with subtle misinformation to pure blatant mis-truths to innocent oversight.
I believe you mean well and I appreciate your input as I now seem to have another knowledgeable person to share info and mutual interest with here. But I do keep it real...tee hee.
I'm also very private about myself and what I share about what I KNOW about this company for A REASON.
The world knows who is the #1 tax preparer but this the JTX board and other company symbols and constant posts mentioning of what HRB does even if subtle will disappear. With that disclaimer said, it is good to have you on onboard Greg but no smack talking about HRB vs. JTX...it hits too close to home.
You also know we are both (HRB and JTX) in a market share battle with the "ticker symbol" IRS who would not have us in business at all if it was up to them IMO.
On the stock side this would be a good level of support which we know now must be supported if the stock is to remain to be listed so can you say BOTTOM?
have a great weekend and I look forward to your continued input,
DD22
if you have to make the value of JTX be in relation to HRB thats fine.....I believe that JTX has the opportunity to increase in value regardless of what HRB or Joes Tax Shop does.
I believe for the most part the ball is in their court in regards to how well they do. All I did was point out a few indicators I am using to guide my investment in this company.
on my advice, a very good friend franchised with jtx and now has 11 offices.......fortunately for me, not in my franchise territory. thats fine if you dont like HRB.
my first post here was actually trying to reassure investors in JTX.
The fact is that JTX was in danger of being delisted from the NYSE because of non compliance with listing requirements.
I believe that the principal owners will not let this happen so all power will be brought to bear to remain in compliance til tax season. When tax season comes, the results will determine the success or failure of the company.
JTX doesnt even need to have a good tax season to add value to the stock. A flat tax season for JTX is a win as it will demonstrate a stability not seen over the last few tax season.
If they have a good tax season...wow, everyone in this will make some good good money.
one of the leading things that can make for a good tax season is the Preparer Certification program instituted by the IRS. It should free up some returns from Mom and Pops that dont get certified.
But........long term.........RAL's ARE GOING AWAY. That is going to happen! with the increased speed of IRS processing the need will be deminishing. FOR THE ENTIRE TAX PREP INDUSTRY.
I would say within 5 years there will be no such thing as a RAL.
what will take its place? dont know
will it drive big players in the tax prep industry out of business? dont know
But that segment of the industry will not be around too much longer.
great..There is no issue with the RAL funding JTX has left in place from Republic and Santa Barbara. JTX has contracts with the RAL lending banks that are not up for review or renewal this year like last year's fiasco in December. If anything they will ADD more RAL lending capacity.
Again for the others reading here the the RAL is being affected INDUSTRY WIDE to include HRB, Mom and Pop, CPAs and any other tax preparer who is trying to get a RAL for their customer.
HRB is not in any way immune to the Federal Government's obvious chipping away at the tax prep businesses and the other service institutions that fund them. JTX just happens to be the first industry target to go after and the RAL is low hanging fruit for them since THEY (FDIC) have that power to "protect its citizens".
http://video.foxbusiness.com/v/4347400/jackson-hewitt-ceo-were-confused-like-taxpayer/
"and we will BE ready for whatever tax changes come down".
thanks for contributing to the board and good luck in the upcoming tax season,
DD22
I own JTX stock doubledown.
and I will be watching the indicators I spoke of for determining the time to sell or buy more.
take if for what you want but I believe at this time both JTX and HRB are under priced.
There is a difference in how I make a living from work and investments.
In my work life, I dont want to see JTX open near my offices......they would be competition for me. Completely different than looking at the company for investment purposes.
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